As a young nonprofit matures, at some point the board will want to hire staff, formalize programs and allow the "working board" to gradually move to being a "policy board."

You will need to examine various potential revenue streams to determine and plan for those that will work for your nonprofit.

Many nonprofits think of foundation grants first when seeking early revenue streams for meeting mission. Like banks, foundations look at your chances of success when you are asking for money. This means already having a track record of using solicited money well. Did you achieve what you said you would? Are your financial records impeccable?

You must also know how to demonstrate positive community impact - not just in "numbers served" but in how the individual and community have been positively changed by your services. Specifying what success will look like - and how you will measure and report it for your program - will greatly strengthen your grant application.

The Foundation Center, a national nonprofit service organization and leading authority on organized philanthropy, has a handy checklist nonprofits can compare themselves against before applying for grants.

Items on the list include a clear and compelling mission statement; a well-organized board, capable leadership, management and staff; clear lines of accountability; efficient operations and support systems; solid finances, with reliable and diverse revenue streams; high-quality, well-regarded, relevant programs; sound organizational planning, development and evaluation procedures; and a solid history.

The newer nonprofit that may not meet all these requirements can also seek a fiscal agent - a more experienced nonprofit partner who has a track record and whose focus aligns with yours.

The fiscal agent acts temporarily as the "parent organization," with a contract between the two organizations spelling out the details. Contracted fiscal agents can legally receive grant money to be used for your nonprofit's programs.

Only 11 percent of income for nonprofits comes from foundations. Other sources are fundraising events, memberships, letter campaigns, major gifts solicitation, planned giving programs and revenue generating programs.

Some of these sources can produce new income fairly quickly. Others will require first laying groundwork for organizational maturation.

For example, it's less likely you will be able to solicit major gifts if you are a young, relatively unknown nonprofit - unless you find a generous donor highly interested in your cause who has confidence in your leadership.

Typically, however, a nonprofit must be in at least the "young adult" stage of nonprofit maturity to warrant a major gifts campaign.

Each potential revenue source also has its pros and cons. Each has its own requirements, from documentation to well developed internal processes, to the human resources you can put toward fundraising projects.

No nonprofit can afford to rely only on grants and a trickle of small gifts and expect to be sustainable. So it's imperative that you become familiar with all the potential revenue options and learn the right questions to ask to assess the viability of each for your organization.

You can also use this information to create a long-range plan for preparing to add various new revenue sources as your nonprofit matures.

Sarah Todd is regional manager for the Georgia Center for Nonprofits, Georgia's association for nonprofit organizations. The Center has offices in Savannah, Brunswick, Atlanta, Folkston and Nahunta. Sarah can be reached in Savannah at 912-234-9688 or st@gcn.org.

Identifying Revenue Sources workshopOn Tuesday, Feb. 15, GCN will offer "Identifying Nonprofit Revenue Sources" in Savannah. This basic-level workshop is designed to help young nonprofits understand the pros and cons of various potential revenue sources and how to most effectively plan for and pursue them. Contact the Savannah GCN office at 912-234-9688 for more information.